The chamber Secretary General D S Rawat said “It would also help in giving more funds to the corporate sector for investment and growth and also generate confidence and certainty. This in turn will result in overall buoyancy in the national economy.”ETAuto | March 17, 2016, 14:39 IST

NEW DELHI: Making out a strong case for removal of cess and surcharges of various types, the Assocham has approached the Finance Ministry for a clear road-map for reduction of corporate tax to 25 per cent, which is effectively over 34 per cent at present.

In a post-Budget memorandum to the Finance Ministry, the chamber said the surcharge and education cess was originally introduced for a short period of time but the same is being continued from year to year.

This has pushed up the overall tax rate sharply for the corporate sector to 34.608 per cent.

The chamber Secretary General D S Rawat said “It would also help in giving more funds to the corporate sector for investment and growth and also generate confidence and certainty. This in turn will result in overall buoyancy in the national economy.”

With a view to helping the ‘Start-ups’, the Assocham representation stated that the reduced tax rate of 25 per cent should also be made applicable for all companies and not only to manufacturing companies.

“This would provide a boost to the ‘Start-up India’ initiative and will bring newly set-up manufacturing as well as non-manufacturing companies on an equal footing as far as tax rates are concerned”.

It said with introduction of a new provision for levy of tax on dividend in excess of Rs 10 lakh, a situation of triple taxation has arisen.

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In 2018, automobile demand remained robust despite the slowdown overcast in the last three months of year. All segments reported strong double-digit growth in the calendar year ending December 31 except passenger vehicles which reported a growth of 5 per cent. Three-wheelers sales grew fastest followed by commercial vehicles, two-wheelers, and passenger vehicles. The overall automobile sales crossed 26.7 million units for the first time.

In 2018, automobile demand remained robust despite the slowdown overcast in the last three months of year. All segments reported strong double-digit growth in the calendar year ending December 31 except passenger vehicles which reported a growth of 5 per cent. Three-wheelers sales grew fastest followed by commercial vehicles, two-wheelers, and passenger vehicles. The overall automobile sales crossed 26.7 million units for the first time.